Citigroup (NYSE:C) failed bid for Wachovia (NYSE:WB) would have expanded Citi’s deposit base and upgraded their bank infrastructure. But Wells Fargo (NYSE:WFC) swooped in and offered Wachovia $6 more a share and Citi’s plan went up in smoke as did it’s share price. But Citi is great value right now, according to Andrew Gordon.

This from Investor’s Daily Edge

Citi is suffering from failing home and consumer loans. Of course, it’s not the only bank in this quandary, and its losses this year should turn into profits next year. But the loss of Wachovia is a major blow. It dropped almost 20 percent on the news last Friday.

Its price-to-book is under one -– the only major U.S. bank with a below-one ratio. So its assets are now worth more than what you pay for it.

The bailout should assure that nothing disastrous will happen to Citi. But if the bailout provides a floor under bank prices, it will also assure that Citi won’t be able to find another bank as cheap as Wachovia was to buy.

But right now Citi is dirt-cheap. Instead of going up five percent on Friday, it fell by 20 percent. That’s a 25-percent differential. At that discount, the company is hard to resist.

Source: Left at the Altar